Posted by Carmen on March 02, 1999 at 08:16:44:
In my area, there is software that hooks you up to the tax rolls - and that show every lien placed on a property. The MLS does this too, but for some reason the info is not as good. As a realtor, I have access to the MLS, and can do a search on a daily basis for all the new liens placed on homes. I have found that a large percentage of these properties are over-leveraged (they owe the same or close to the same amount as the house is worth). However, there are some people with good equity. Since it takes months for a foreclosure sale to actually take place, it seems it would be worth “monitoring” and contacting these people, and as “the sale day” gets closer, they may become more motivated to talk to you. I would think that if you contact someone on the phone the same day the bank delivers the information that their house is being foreclosed on (even though they are most probably expecting it), you will get an angry, upset person who will consider you a vulture, accuse you of invading their privacy, and tell you to get lost - but a non-threatening “let me help you save your home and/or credit” letter may be seen as a godsend. I’ve not tried this yet, but have some ideas in the back of my head on how to do this once I have some more funds to do the deals myself. These people may even be good candidates for Lease-Options on their own property - if theirs is a short-term problem (and if they have equity and a good payment history, chances are they just had a major life trauma, and would be grateful for the chance to get back on track - just don’t know how to do it)
Long answer to a short question!